Colorado’s foreclosure is administered by the Denver County Public Trustee — an elected county official — under CRS § 38-38. The lender files a Notice of Election and Demand (NED) with the Public Trustee, which is recorded with the Denver County Clerk and Recorder. After 5 weeks of publication, the lender obtains an Order Authorizing Sale from Denver District Court via a Rule 120 hearing. The Denver County Public Trustee then schedules and administers the trustee’s sale. Owner-occupants of a single-family home have 75 days after the trustee’s sale to redeem by paying the sale price plus interest (CRS § 38-38-302) — a right that does not exist in Texas, Arizona, or Nevada.
Colorado Public Trustee Foreclosure: The Denver County Process
Step 1: Federal 120-day waiting period. Federal law requires servicers to wait 120 days from first missed payment before initiating foreclosure. Contact your servicer immediately.
Step 2: Notice of Election and Demand (NED). After the federal waiting period, the lender’s attorney prepares and files a Notice of Election and Demand (NED) with the Denver County Public Trustee. The Public Trustee records the NED with the Denver County Clerk and Recorder. This is the official start of the Colorado foreclosure process.
Step 3: Publication. The Denver County Public Trustee publishes a Notice of Sale in a Denver County newspaper once a week for 5 consecutive weeks. The Public Trustee also mails notice to the homeowner and all parties with an interest in the property.
Step 4: Rule 120 hearing — the Colorado quasi-judicial element. While publication runs, the lender’s attorney files a Motion for Order Authorizing Sale in Denver District Court under Rule 120 of the Colorado Rules of Civil Procedure. The court schedules a hearing.
At the Rule 120 hearing, the homeowner can appear and raise two specific defenses:
- Active duty military service (SCRA): If the homeowner is on active military duty, the court must stay the proceeding
- Not in default: If the homeowner can demonstrate that no default actually occurred, the court should deny the motion
Rule 120 hearings in Colorado are specifically limited — courts cannot hear most substantive defenses (fraud, loan modification, tender, RESPA violations) at a Rule 120 proceeding. Those require a separate civil lawsuit filed in Denver District Court (a “120 action” or separate civil complaint).
Step 5: Order Authorizing Sale. If the court grants the motion, it issues an Order Authorizing Sale. The Denver County Public Trustee then schedules the sale date.
Step 6: Cure period. Colorado law (CRS § 38-38-104) gives the homeowner the right to cure all defaults at any time up to noon on the day before the trustee’s sale. Curing a default means paying all missed payments, late fees, attorney fees, and Public Trustee fees. This cure right is the Colorado equivalent of Florida’s right of redemption before sale — more limited in window but structurally similar.
Step 7: Denver County Public Trustee’s sale. The Denver County Public Trustee administers the sale at the designated location. Third-party bidders submit cashier’s checks or bid electronically. The lender credit bids.
Step 8: 75-day post-sale redemption period. After the trustee’s sale, CRS § 38-38-302 gives the owner-occupant of a single-family home 75 days to redeem by paying the winning bid price plus 12% annualized interest. During this 75-day window, the original owner retains possession. If the owner does not redeem within 75 days, the winning bidder receives the Public Trustee’s deed.
Total timeline from first missed payment: 120 days (federal) + NED recording and publication (approximately 6 to 8 weeks) + Rule 120 hearing (approximately 2 to 4 weeks) + sale scheduling + 75-day redemption = approximately 8 to 10 months from first missed payment until the winning bidder receives clear title.
The 75-Day Redemption: Colorado’s Most Important Seller Protection
The 75-day post-sale redemption period exists ONLY in Colorado among the non-judicial states and is more protective than anything in Texas, Arizona, or Nevada. It means:
- The owner-occupant can allow the trustee’s sale to occur
- During the 75-day window, the owner occupies the home (the winning bidder cannot take possession)
- If the owner raises the full redemption amount (winning bid + 12% annualized interest) within 75 days, they reclaim the home as if the sale never occurred
- If the owner does not redeem within 75 days, the winning bidder gets the deed
Practical use of the redemption period: For Denver homeowners who have equity but cannot stop the foreclosure before the sale (pending a refinance, pending a sale, or pending inheritance funds), the 75-day redemption window provides a critical buffer.
A cash sale during the 75-day redemption period: A Denver homeowner who allows the trustee’s sale to occur can still sell during the 75-day window — the redemption right is personal property that can be used to convey the property to a buyer (though this requires an attorney experienced in Colorado foreclosure redemption transactions). More commonly, the homeowner sells before the sale to avoid the complexity.
SCRA Protection for Active Duty Military in Denver
The Denver metro area has significant military presence (Buckley Space Force Base, Peterson Space Force Base, Fort Carson nearby). SCRA protections apply to active duty servicemembers:
- The servicemember can raise SCRA at the Rule 120 hearing, and the court must stay the proceeding
- SCRA caps interest rates at 6% on pre-active-duty mortgages
- SCRA stays foreclosure proceedings during active duty plus 9 months afterward (for servicemembers who obtained the mortgage before entering active duty)
Colorado Deficiency After Foreclosure
Colorado allows deficiency judgments after Public Trustee sales. CRS § 38-38-301 et seq. The lender can sue for deficiency within 6 years of the trustee’s sale (Colorado’s general 6-year contract statute of limitations). Unlike Nevada (anti-deficiency protection for purchase-money residential loans) and Arizona (anti-deficiency protection under ARS § 33-814(G)), Colorado does not have a broad anti-deficiency statute for residential mortgages.
Your Denver Options
Option 1: Loss Mitigation During the 120-Day Window
Contact your servicer. Colorado Housing Finance Authority (CHFA): 1-800-877-2432, provides free foreclosure prevention counseling.
Option 2: Raise Defenses at the Rule 120 Hearing
File an objection to the Rule 120 motion and appear at the hearing if you are on active military duty (SCRA) or if the default did not actually occur.
Option 3: Cure Before Noon the Day Before Sale
Pay all arrears, fees, and Public Trustee costs before noon on the day before the scheduled sale. The cure amount grows over time as fees accumulate — act as early as possible.
Option 4: Sell Before the Trustee’s Sale
A cash sale (7 to 14 days) closes and pays off the mortgage before the trustee’s sale. Any remaining equity goes to you. Traditional listings can work if started during the 5-week publication period (30 to 45 day market time + 30 days to close = possible before sale date).
Option 5: Use the 75-Day Redemption Period
If the trustee’s sale occurs before you can act, the 75-day redemption window gives you time to sell. A cash buyer for the redemption right must understand Colorado foreclosure redemption law — consult a Colorado real estate attorney.
Option 6: Chapter 13 Bankruptcy
Automatic stay halts all foreclosure proceedings including the Rule 120 hearing.
Get a cash offer on your Denver home →
For the full overview of Denver fast-sale options, see: Sell My House Fast Denver CO: Every Real Option in 2026
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